3. The first respondent filed a counter affidavit stating that the petitioners are not the owners of residential houses at Seshukonda Colony, Ramnagar, Yalamanchili, as they have not filed any sanctioned layout and permissions for construction of the houses. The Tahsildar, Yelamanchili, vide his proceedings dated 03.08.2006 stated that an extent of 0.500 hectares in Survey No.247 of Yerravaram Village had been identified and proposed for quarrying rough stone and gravel to meet the requirement of the housing activity in and around Yelamanchili Town and there was no housing activity near the newly proposed quarry site in Survey No.247 of Yerravaram Revenue Village. The earlier quarry lease for rough stone and gravel over an extent of 0.500 hectares in Survey No.247 of Yerravaram Village was granted in favour of the fifth respondent by the first respondent for a period of five years vide proceedings 18.10.2001 and the lease subsisted till 20.11.2006. The second respondent recommended for determination of the above said lease under Rule 11 of the Andhra Pradesh Minor Mineral Concession Rules, 1966 (for short, the Rules), under public interest based on the reports of the Mandal Revenue Officer, Yelamanchili, dated 13.09.2005 and 13.03.2006 on the ground that the surrounding quarrying area had been subsequently developed with housing colonies and the said land was also adjacent to the High Way Road and was not proper to continue quarrying in the said land. The first respondent, by letters dated 25.04.2006 and 29.07.2006, recommended to the Director of Mines and Geology, Hyderabad, to initiate necessary action for cancellation of the lease under Rule 11 of the Rules under public interest. Meanwhile, the lease period expired on 20.11.2006. When the renewal of the lease came for consideration, it was rejected by the first respondent based on the proposals of the second respondent. But the area now granted in favour of the fifth respondent is different from the area which was earlier granted and the Mandal Revenue Officer mentioned in his no objection certificate that there was no housing activity near the newly proposed quarry site of Yerravaram Revenue Village and recommended for grant